FCC chief wants some subsidies used for broadband

FCC CHIEF WANTS SOME SUBSIDIES FOR BROADBAND
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
The Federal Communications Commission should take steps so that some telephone subsidies can be used to encourage the roll-out of high-speed Internet service in rural areas, FCC Chairman Kevin Martin said on Tuesday. The $7.3 billion Universal Service Fund administered by the FCC has traditionally subsidized voice telephone services in high-cost, rural areas of the nation. Chairman Martin said the fund should also help companies roll out broadband service in those areas. "I think that we need to recognize that we have a limited amount of money, and we need to be spending it wisely and trying to facilitate broadband connectivity more fully," Chairman Martin said in a speech at a telecommunications industry conference. He also reiterated his support for proposals to use a new, "reverse auction" bidding system to determine which companies get universal service funds. Under the current system, money is given to several companies in a particular rural area in an effort to foster competition.
http://www.reuters.com/article/bondsNews/idUSN1947760320070619

* FCC Calls For More And Less Competition
Competition isn't always a good thing when it comes to universal service said Chairman Martin. He noted that we have voice competition among providers in areas where it's not economic for even one provider to offer service. "We need to recognize that we can't have universal service subsidies to multiple providers in rural areas," Martin said. "We shouldn't be subsidizing multiple voice competitors, and instead we should subsidize broadband in rural areas."
http://www.internetnews.com/xSP/article.php/3684166